Basics
Contracts trade between 1c and 99c. The price is the market's implied probability.
A YES contract at 65c means the market thinks there's a 65% chance the event happens. If it resolves YES, the contract pays $1.00. If NO, it pays $0.00.
YES + NO = $1.00
Buying NO at 35c is the same as selling YES at 65c. The two sides always sum to $1.00. This is how the market stays balanced.
Cost and Payout
You pay the contract price times your quantity. If you buy 10 YES contracts at 65c, you pay $6.50. If the event resolves YES, you get $10.00 back. Your profit is $3.50.
If it resolves NO, you lose your $6.50.
Next Steps
- Order Types: Market vs limit orders
- Trading: Place orders